climate change and growth strategies world bank new growth ... shah.pdf · world bank – new...
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Washington DC October 15, 2014
Climate Change and Growth Strategies
World Bank – New Growth Strategies
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1. De-link growth from energy use using policy as a driver
2. Industry and energy efficiency should be areas of focus
3. Energy Management Systems (EnMS) is a solution
4. Restorative manufacturing or Circular Economy must play a key role
Theme
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Energy Productivity
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Source OECD/IEA 2014
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Energy Consumption As A Function Of Quality Of Life
Source: Penn State University, Department of Energy and Mineral Engineering
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Energy Consumption Differences
• Efficiency of Industrial, Commercial, Residential and Transportation Energy Use
• Climate and Geography
• Lifestyles
• Nature of Products Produced By Country
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Delinking Growth and Energy Use
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GDP
Energy Use
GDP
Energy Use
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• Comprehensive system of policies and programs based on a mix of government regulation and market-based approaches – Energy Conservation Law - 1999
• Current aggressive energy efficiency promotion system developed under 11th Five Year Plan (2006 – 2010) – Revised Energy Conservation Law - 2007
• Continued under 12 Five Year Plan (2011 – 2015) with focus on capacity building and implementation
• Three Institutional Groups – National, provincial and local governments
– Industrial enterprises
– Third party service and support organizations
China’s Energy Efficiency Programs
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Industry Accounts for 50% of Total Global Energy Use (Primary Energy Basis*)
0
100
200
300
400
500
600
700
800
900
2005 2010 2015 2020 2025 2030 2035 2040
Industrial Commercial Residential Transportation
Pri
mar
y En
ergy
Co
nsu
mp
tio
n, Q
uad
s
Source: DOE EIA International Energy Outlook 2013
4
* Includes fuel for electricity generation and T&D losses
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The U.S., China, and India Represent about 50% of Total Industrial Energy Use
0
50
100
150
200
250
300
350
400
450
2005 2010 2015 2020 2025 2030 2035 2040
U.S. Other OECD China India Other Non-OECD
Pri
mar
y En
ergy
Co
nsu
mp
tio
n, Q
uad
s
Source: DOE EIA International Energy Outlook 2013
Total Non-OECD
Total OECD
China
U.S.
India
5
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Industry is the Largest Energy Consuming Sector in the U.S., China and India
Industrial Commercial Residential Transportation
China 101.2 Quads total
India 27.4 Quads total
U.S. 97.9 Quads total
31.2% 75.5%
68.5%
Source: DOE EIA International Energy Outlook 2013
Primary energy use - 2010
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Transforming Industry
Production
CO2
Per
cen
t o
f 1
99
0 (
20
04
fo
r w
ater
)
20%
60%
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Achieving Energy Efficiency Potential through energy management
What is an Energy Management System (EnMS)?
•A suite of procedures and practices to ensure systematic tracking, analysis and planning
of energy use in industry
EnMS standards:
defined by standardization bodies (e.g., ISO 50001)
EnMS specifications:
formulated by a government agency
What does an EnMS System Do?
• Maximizes energy savings and improves
energy performance continuously through
organization and technology changes at the
facility and enterprise level
• Helps companies overcome informational,
behavioural and organisational barriers to
energy efficiency
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Key Elements of Energy management Systems
An EnMS includes:
• Energy policy
• Cross-divisional management
team
• A baseline
• An energy review
• Energy performance indicators
• Action plans
• Internal audits
• Third party certification
…within a Plan-Do-Check-Act framework.
Sources: A. McKane (2011), Superior Energy Performance (2011), ISO (2011).
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Continuous Cost Reduction with Energy Management
Source: Adapted from Kahlenborn et al., (2012)
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0
500
1000
1500
2000
2500
3000
3500
4 12 21 39 72 131 180 311
427 455 474 604
776 827
1208
1394
1909 2222
2671
2917 3099
3240 3357
3441
Number of ISO 50001 certified sites in GERMANY
R. Peglau (German Federal Environment Agency)
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Examples of Government Programmes that Promote EnMS
Country Program Name EnMS type Voluntary Mandatory Certification Drivers
Australia Energy Efficiency Opportunities
EEO Assessment Framework
M No Public reporting of EE opportunities
China Top 10,000 Enterprise Program
GB 23331 M Voluntary Mandatory
Denmark Agreement on Industrial Energy Efficiency (DAIEE)
ISO 50001 V Yes Tax rebate
Ireland Energy Agreements Program
ISO 50001 V Yes Extensive technical support
South Korea
GHG and Energy Target Management scheme
ISO 50001 M Yes Mandatory
Sweden Energy Efficiency in Energy Intensive Industries (PFE)
ISO 50001 V Yes Tax rebate
USA Superior Energy Performance
ISO 50001 V Voluntary Awards, possible tax rebate
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The Circular Economy – Industrial System That is Restorative By Design
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We are still losing enormous tonnages of material Million tonnes, EU27, 2010E 1. Includes services and agriculture, forestry and fishing 2. Also includes sewerage and other waste management
activities 3. Includes used oils, rubber, textiles, household waste,
chemical waste, and other non-specified
SOURCE: Eurostat waste statistics (2011)
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1. Growth strategies must consider opportunities and risks posed by climate change
2. Must delink growth from energy use
3. For industry sector, energy efficiency is key
4. Adoption of Energy Management System (EnMS) will lead to desired results in industry
5. Government policies are necessary to encourage EnMS
6. Must move to Circular Economy
Conclusions
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